The accounting audit is a tax audit form. However, it is a concept to be grasped with great caution, as the rules governing it are numerous. Compta-Facile dedicates this form and answers questions: what is an accounting audit ? How is it going? What are the powers of the auditors? What follow-up action has been taken?
What is an accounting check?
By definition , the accounting audit is a tax audit consisting of various transactions aimed at examining the accounting of a company . This control makes it possible to compare certain material or extra-accounting data with that resulting from its accounting. The following taxes may be subject to an audit: the income tax (BIC, BNC or BA), the corporation tax and the value added tax.
The accounting verification is used to monitor the accuracy and completeness of the declarations made and to rectify upward or downward adjustments.
There are three forms of accounting verification :
- The audit of general accounting (the tax position of the company is checked against all taxes),
- Verification of accounting point (only a point or a specific tax on the tax position of the company is verified)
- The so – called audit-diagnostic (simplified procedure for small businesses and non-commercial profit holders) audit .
What is the scope of an accounting audit?
All undertakings required to keep and present accounting documents may be subject to an audit of accounts, provided that the control covers:
- Industrial and commercial profits ( BIC ) irrespective of the tax regime (normal, real simplified taxation or micro-BIC );
- Non-commercial profits ( NBC ) regardless of the tax regime (controlled declaration or micro-BNC );
- Agricultural benefits only if they are part of a real scheme;
- Or turnover taxes (VAT in particular).
When auditing one of these taxes, verification may extend to registration fees (but these can not, on their own, constitute grounds for auditing the accounts).
What is the procedure for an accounting audit?
Location of Accounting Audit
In principle, an accounting audit is carried out on the premises of the company, ie at its head office or at its main place of business. Exceptionally, it may take place in the premises where the company’s accounts are kept, if both parties agree, and to the extent that oral and contradictory debate with the auditor remains possible. Thus, an audit can be carried out at the office of the Company’s Public Accountant or at his or her counsel (for example, a tax advisor) or even at the auditor’s office (exceptional case).
The auditor may, under certain conditions, carry accounting documents. The company must ask for it and receive a detailed receipt in exchange.
Powers of auditor
The auditor has significant investigative powers . In particular, it can carry out physical checks of all kinds, cross-checks from various sources of information, investigations and searches. It can also assess the nature of the management of the company by its manager (normal or abnormal) and thus penalize an abnormal act of management .
Duration of accounting audit
In small businesses, the auditor can not carry out an on-the-spot check for more than 3 months . This provision applies to companies whose turnover is less than the limits permitting to benefit from the simplified tax regime (RSI), ie 789 000 euros for purchasing / selling activities or 238 000 euros for the provision of services .
This period is extended to 6 months where the accounts contain serious irregularities depriving it of probative value. The auditor must then notify the company of this lengthening.
Guarantees of the controlled enterprise
Counterparties in the power of the auditor are the granting of rights to the taxpayer. The main guarantees available to the company are as follows:
- The sending, in advance, of a verification notice of accounting in order to notify the company of the control (except in case of unexpected control);
- The stipulation that it has the faculty to be assisted of the council of its choice;
- The delivery of the charter of the taxpayer notifying him of his rights;
- Information on the results of the audit and the financial consequences;
- The limitation of the duration of the on-site accounting audit ;
- The prohibition of re – auditing the exercises or income already audited, except for fraud or the appearance of a new fact subsequent to the audit;
- The possibility of applying the cascading deduction .